Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Alphabet Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 73,795 59,972 76,033 40,269 34,343
Add: Income tax expense 11,922 11,356 14,701 7,813 5,282
Earnings before tax (EBT) 85,717 71,328 90,734 48,082 39,625
Add: Interest expense 308 357 346 135 100
Earnings before interest and tax (EBIT) 86,025 71,685 91,080 48,217 39,725
Add: Depreciation of property and equipment 11,946 13,475 10,273 12,905 10,856
Earnings before interest, tax, depreciation and amortization (EBITDA) 97,971 85,160 101,353 61,122 50,581

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Alphabet Inc. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Enterprise Value to EBITDA Ratio, Current

Alphabet Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 1,671,300
Earnings before interest, tax, depreciation and amortization (EBITDA) 97,971
Valuation Ratio
EV/EBITDA 17.06
Benchmarks
EV/EBITDA, Competitors1
Charter Communications Inc. 6.89
Comcast Corp. 6.72
Meta Platforms Inc. 20.12
Netflix Inc. 12.56
Walt Disney Co. 20.02
EV/EBITDA, Sector
Media & Entertainment 15.09
EV/EBITDA, Industry
Communication Services 12.74

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Alphabet Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,666,699 1,248,790 1,832,285 1,273,801 879,497
Earnings before interest, tax, depreciation and amortization (EBITDA)2 97,971 85,160 101,353 61,122 50,581
Valuation Ratio
EV/EBITDA3 17.01 14.66 18.08 20.84 17.39
Benchmarks
EV/EBITDA, Competitors4
Charter Communications Inc. 7.09 7.68 9.97 11.53 11.86
Comcast Corp. 7.10 9.60 8.45 10.36 8.66
Meta Platforms Inc. 19.72 12.19 10.85 17.31 17.76
Netflix Inc. 11.85 8.40 9.51 16.57 13.35
Walt Disney Co. 17.34 17.80 34.53 60.13 16.10
EV/EBITDA, Sector
Media & Entertainment 14.86 12.37 14.24 17.93 14.61
EV/EBITDA, Industry
Communication Services 12.58 11.45 11.49 14.32 11.53

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,666,699 ÷ 97,971 = 17.01

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Alphabet Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.